How do you calculate incremental cost for the following: Complying with the Clean Air Act Amendments will be costly. There are three main options for complying with the Clean Air Act: analyze theincrementalcost of each compliance option. Exclude costs or revenues that are not incremental to compliance. (Hint: Calculating the incremental compliance cost of Option 1, purchase allowance, is very straightforward.

Option 1: Burn High-Sulfur Coal without Scrubbers; Purchase Credits; No CAPEX 1990 to 1995 Coal Price 1996 to 2016 Coal Price Coal Required Per Year Emmissions 1990 to 1995 Coal Cost 1996 to 2016 Coal Cost $41.46 $29.82 per ton per ton 8,338,000 tons per year 266,550 tons per year $345,693,480 $ per year $248,639,160 $ per year